CSB Bancorp, Inc. (OTC Pink: CSBB) today announced fourth quarter 2018
net income of $2,492,000, or $.91 per basic and diluted share, as
compared to $1,779,000, or $.65 per basic and diluted share, for the
same period in 2017. Income before federal income tax amounted to $3.1
million, an increase of 16% over the same quarter in the prior year. For
the twelve month period ended December 31, 2018 net income totaled
$9,412,000, compared to $7,101,000 for the same period last year, an
increase of 33%.

Annualized returns on average common equity (“ROE”) and average assets
(“ROA”) for the quarter were 13.20% and 1.36%, respectively, compared
with 10.02% and 0.99% for the fourth quarter of 2017.

Eddie Steiner, President and CEO stated, “We are pleased to report
record fourth quarter and full year earnings as we continue to grow and
increase market share in our primary counties. Average loan balances
increased for the thirteenth consecutive quarter, while net interest
margin improved for the sixth consecutive quarter. Year-end loan
balances reflect 6% growth during 2018, with deposit balances 4% above
prior year end.”

Net interest income and noninterest income, on a fully-taxable
equivalent basis, totaled $8.2 million during the quarter, a 7% increase
from the prior-year fourth quarter. Net interest income increased $474
thousand, or 7%, in the fourth quarter of 2018 compared to the same
period in 2017.

Loan interest income including fees increased $720 thousand during
fourth quarter 2018 as compared to the same quarter in 2017, an increase
of 12%. Average total loan balances during the current quarter were $30
million higher than the year ago quarter an increase of 6%. Loan yields
for fourth quarter 2018 averaged 5.03%, an increase of 25 basis points
from the 2017 fourth quarter average of 4.78%.

The net interest margin was 4.01% compared to 3.84% for fourth quarter
2017. The tax equivalency effect on the margin dropped to 0.01% from
0.06% a result of the reduction in the corporate income tax rate in 2018.

Noninterest income increased by $150 thousand, or 13%, in the fourth
quarter of 2018 compared to 2017. The increase reflects growth in debit
card fee income, trust and brokerage income, and service charges on
deposit accounts.

Noninterest expense amounted to $4.7 million during the quarter, an
increase of $29 thousand, or less than 1%, from fourth quarter 2017.
Salary and employee benefit costs increased $188 thousand, or 7%,
compared to the prior year quarter, as a result of higher wage and 401k
retirement expenses. Debit card expense increased by $24 thousand, or
19%, on a quarter over quarter basis primarily on expanded channel
advertising and increasing community donations. The Company’s fourth
quarter efficiency ratio was 57.3% as compared to 61.0% for the same
quarter in the prior year.

Federal income tax provision was a $619 thousand expense in fourth
quarter 2018, as compared to $901 thousand tax expense provision for the
same quarter in 2017. The 2017 fourth quarter tax expense included a
$101 thousand expense revaluation of the net deferred tax asset at the
lower statutory rate. The effective tax rate, exclusive of the
revaluation, decreased from 31% to 20% a result of the Tax Cuts and Jobs
Act enacted December 2017.

Average total assets during the quarter amounted to $728 million, an
increase of $12 million, or 2%, above the same quarter of the prior
year. Average loan balances of $541 million increased $30 million, or
6%, from the prior year fourth quarter while average securities balances
of $113 million decreased $14 million, or 11%, as compared to fourth
quarter 2017.

Average commercial loan balances for the quarter, including commercial
real estate, increased $17 million, or 5%, from prior year levels.
Average residential mortgage balances increased $8 million, or 7%, over
the prior year’s quarter. Average consumer credit balances increased $5
million, or 8%, versus the same quarter of the prior year.

Nonperforming assets decreased $3.1 million from December 31, 2017 to
$3.4 million, or 0.62%, of total loans plus other real estate at
December 31, 2018. The decrease in nonperforming assets is the result of
various commercial loans exiting through liquidation during 2018. At
December 31, 2018, approximately $1.1 million of the non-performing loan
total is guaranteed by either USDA or the SBA. Delinquent loan balances
as of December 31, 2018 declined to 0.84% of total loans as compared to
1.53% at December 31, 2017.

Net loan losses during fourth quarter 2018 were $641 thousand, or 0.47%
annualized, compared to fourth quarter 2017 net loan losses of $12
thousand. Full year net charge-offs amounted to 0.19% in 2018 as
compared to 0.17% in the prior year. The allowance for loan losses
amounted to 1.08% of total loans at December 31, 2018 as compared to
1.08% at December 31, 2017.

Average deposit balances grew on a year over year comparison by $36
million, or 7%, partially on the strength of customer response to higher
rates paid on insured deposits. For the full year 2018, the average cost
of deposits amounted to 0.40%, as compared to 0.24% in 2017. During the
fourth quarter 2018, increases in average deposit balances over the
prior year quarter included non-interest bearing demand accounts of $13
million and savings accounts of $7 million. The average balance of
securities sold under repurchase agreement during the fourth quarter of
2018 decreased by $4 million, or 10%, compared to the average for the
same period in the prior year. During 2017, a new corporate overnight
cash management product was established within interest-bearing checking
and at December 31, 2018 the new product had balances of $23 million.

Shareholders’ equity totaled $76.5 million on December 31, 2018 with 2.7
million common shares outstanding. The tangible equity to assets ratio
amounted to 9.9% on December 31, 2018 and 9.3% on December 31, 2017. The
Company declared a fourth quarter dividend of $0.26 per share, a $.04
per share increase over fourth quarter 2017, producing an annualized
yield of 2.7% based on the December 31, 2018 closing price of $38.50.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio,
with approximate assets of $732 million as of December 31, 2018. CSB
provides a complete range of banking and other financial services to
consumers and businesses through its wholly owned subsidiary, The
Commercial and Savings Bank, with fifteen banking centers in Holmes,
Wayne, Tuscarawas, and Stark counties and Trust offices located in
Millersburg, North Canton, and Wooster, Ohio.

Forward-Looking Statement

This release contains forward-looking statements relating to present or
future trends or factors affecting the banking industry, and
specifically the financial condition and results of operations,
including without limitation, statements relating to the earnings
outlook of the Company, as well as its operations, markets and products.
Actual results could differ materially from those indicated. Among the
important factors that could cause results to differ materially are
interest rate changes, softening in the economy, which could materially
impact credit quality trends and the ability to generate loans, changes
in the mix of the Company’s business, competitive pressures, changes in
accounting, tax or regulatory practices or requirements and those risk
factors detailed in the Company’s periodic reports and registration
statements filed with the Securities and Exchange Commission. The
Company undertakes no obligation to release revisions to these
forward-looking statements or reflect events or circumstances after the
date of this release.

CSB BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

Quarters

(Dollars in thousands, except per share data)

2018

2018

2018

2018

2017

2018

2017

EARNINGS

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

12 months

12 months

Net interest income FTE (a)

$

6,934

$

6,847

$

6,697

$

6,436

$

6,532

$

26,913

$

24,833

Provision for loan losses

344

324

324

324

180

1,316

1,145

Other income

1,270

1,175

1,168

1,145

1,120

4,758

4,340

Other expenses

4,725

4,638

4,619

4,537

4,696

18,518

17,316

FTE adjustment (a)

24

46

45

47

96

162

381

Net income

2,492

2,432

2,324

2,164

1,779

9,412

7,101

Diluted earnings per share

0.91

0.88

0.85

0.79

0.65

3.43

2.59

PERFORMANCE RATIOS

Return on average assets (ROA)

1.36

%

1.34

%

1.30

%

1.25

%

0.99

%

1.31

%

1.02

%

Return on average common equity (ROE)

13.20

%

13.07

%

12.94

%

12.33

%

10.02

%

12.89

%

10.33

%

Net interest margin FTE (a)

4.01

%

4.00

%

3.98

%

3.95

%

3.84

%

3.98

%

3.80

%

Efficiency ratio

57.26

%

57.45

%

58.41

%

59.52

%

60.99

%

58.14

%

58.96

%

Number of full-time equivalent employees

170

174

174

171

174

MARKET DATA

Book value/common share

$

27.91

$

26.94

$

26.47

$

25.90

$

25.72

Period-end common share mkt value

38.50

40.57

39.00

35.95

33.11

Market as a % of book

137.94

%

150.59

%

147.34

%

138.80

%

128.73

%

Price-to-earnings ratio

11.22

12.80

13.13

13.07

12.78

Cash dividends/common share

$

0.26

$

0.24

$

0.24

$

0.24

$

0.22

$

0.98

$

0.84

Common stock dividend payout ratio

28.57

%

27.27

%

28.24

%

30.38

%

33.85

%

28.57

%

32.43

%

Average basic common shares

2,742,242

2,742,242

2,742,242

2,742,242

2,742,242

2,742,242

2,742,242

Average diluted common shares

2,742,242

2,742,242

2,742,242

2,742,242

2,742,242

2,742,242

2,742,242

Period end common shares outstanding

2,742,242

2,742,242

2,742,242

2,742,242

2,742,242

Common shares repurchased

0

0

0

0

0

Common stock market capitalization

$

105,576

$

111,253

$

106,947

$

98,584

$

90,796

ASSET QUALITY

Gross charge-offs

$

691

$

43

$

45

$

303

$

19

$

1,082

$

1,204

Net (recoveries) charge-offs

641

38

39

295

12

1,013

832

Allowance for loan losses

5,907

6,204

5,918

5,633

5,604

Nonperforming assets (NPAs)

3,428

5,341

4,399

4,622

6,522

Net charge-off (recovery) /average loans ratio

0.47

%

0.03

%

0.03

%

0.23

%

0.01

%

0.19

%

0.17

%

Allowance for loan losses/period-end loans

1.08

1.16

1.11

1.06

1.08

NPAs/loans and other real estate

0.62

1.00

0.82

0.87

1.26

Allowance for loan losses/nonperforming loans

177.45

116.16

134.52

122.40

85.93

CAPITAL & LIQUIDITY

Period-end tangible equity to assets

9.86

%

9.77

%

9.41

%

9.50

%

9.33

%

Average equity to assets

10.29

10.25

10.06

10.16

9.84

Average equity to loans

13.83

13.72

13.47

13.50

13.76

Average loans to deposits

89.88

90.80

90.77

91.89

88.33

AVERAGE BALANCES

Assets

$

727,962

$

720,372

$

715,902

$

700,394

$

715,799

$

716,243

$

692,859

Earning assets

686,807

679,281

674,699

660,772

674,234

675,474

652,916

Loans

541,482

538,182

534,852

527,315

511,805

535,506

497,048

Deposits

602,434

592,738

589,211

573,855

579,433

589,646

553,228

Shareholders' equity

74,900

73,844

72,039

71,173

70,419

73,002

68,738

ENDING BALANCES

Assets

$

731,722

$

710,815

$

723,299

$

699,967

$

707,063

Earning assets

682,345

668,468

681,200

662,779

664,365

Loans

548,974

535,424

535,427

530,395

516,830

Deposits

606,498

587,531

595,073

576,418

583,259

Shareholders' equity

76,536

73,877

72,578

71,019

70,532

NOTES:

(a) - Net Interest income on a fully tax-equivalent ("FTE") basis
restates interest on tax-exempt securities and loans as if such
interest were subject to federal income tax at the statutory rate.
Net interest income on an FTE basis differs from net interest income
under U.S. generally accepted accounting principles.

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